HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has turned in its fourth consecutive quarterly profit as it cashes in on demand for berths and price rises that started to climb in 2022.
The Hyundai Group shipyard holding company reported a first-quarter operating profit of KRW 160.2bn ($116.4m), reversing an operating loss of KRW 19bn a year earlier.
Sales for the South Korean shipyard giant were up almost 14% to KRW 5.52trn in the first three months.
Group shipbuilder HD Hyundai Samho Heavy Industries showed the biggest gains: sales were up 22.7% at KRW 1.71trn and there was a mammoth 223.6% jump in operating profit to KRW 186.4bn.
HD Hyundai Heavy Industries logged a 13.5% rise in year-on-year sales to KRW 2.99trn and an operating profit of KRW 21.3bn.
The smaller HD Hyundai Mipo Dockyard’s sales climbed 10% to KRW 1.5trn but it recorded an KRW 11bn operating.
HD KSOE said rising ship prices have begun to be reflected in orders, which have also been climbing.
It said the number of high-value vessels contracted — such as those with eco-features or dual fuelling — had helped its performance and indicated that it would continue to target these types of ships.
Costs have been reduced by the stabilisation of production, which helped lift operating profit.
